CII Thinkpiece 68: Who Saves for Retirement? Analysing Incentives for Saving Using the Wealth & Assets Survey

Policy and Public Affairs
January, 2012
February, 2012
 

2012 will be landmark year for a lot of things, most notably the rollout of the first phase of auto-enrollment reforms to the UK pensions system. By about 2018, it is expected that all employees in the UK will be auto-enrolled into their employer pension scheme, and the firm will be expected to be required to contribute 4% of the employee’s earnings into the scheme. How much of a difference will this make to people’s saving habits? Behavioural economic theory tells us that the psychology of auto-enrollment might actually work. But will some people actively chose to de-enroll because of their finances, such as their income being too low, or that their partner is saving, of if they are in mortgage arrears? James Lloyd of the Strategic Society Centre and Tim Fassam from the Prudential summarise the results of their extensive survey research that casts light on these issues.

 TP68_Fassam-Lloyd_Who_Saves_Jan2012.pdf,  TP68_Reflective_Questions.pdf
CII Thinkpiece 67: Insurance Regulation in 2012: Finding Solutions to "the British Dilemma"
CII Thinkpiece 60: The Forgotten Hero? The Role of Employer Group Risk Schemes in Closing Protection Gaps
CII Thinkpiece 52: What Motivates Us to Save? Creating Effective Incentives for Public Engagement in Pensions

This document is believed to be accurate but is not intended to provide a basis of knowledge upon which advice can be given. Neither the author (personal or corporate) nor the CII Group nor any of its faculties or societies nor any of the officers or employees of any of these organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the material included in this document.

Any opinions expressed are those of the author or authors and not necessarily those of the CII Group, its faculties or societies.
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